Direct entry by Petronas Chemicals into silicone business

Acquisition: PetChem has entered into a sale and purchase agreement to acquire 100% of Da Vinci Group for RM760.8mil cash. — AFP

PETALING JAYA: Petronas Chemicals Group Bhd’s (PetChem) acquisition of Dutch firm Da Vinci Group BV gives it immediate entry into the growing silicone business and will allow it to command higher and more stable profit margins.

As for funding, the venture is likely to be fully funded via internally generated funds given the petrochemical company’s strong balance sheet.